PT Pupuk Indonesia's Production Capacity Reaches 13.9 Million Tons in 2023

PT Pupuk Indonesia (Persero) has a fertilizer production capacity of up to 13.9 million tons in 2023.

According to Wijaya Laksana, SVP Corporate Secretary of PT Pupuk Indonesia, the majority of their production capacity is urea fertilizer, with a volume of 8.8 million tons.

Furthermore, their production capacity for nitrogen, phosphate, and potassium (NPK) fertilizers reaches 3.8 million tons, and other types of fertilizers amount to approximately 1.3 million tons.

"Our production capacity to meet the subsidized urea needs is more than sufficient. The same applies to NPK fertilizers," said Wijaya, as quoted by Antara on Monday (13/2/2023).

However, PT Pupuk Indonesia's production plan this year is smaller than its production capacity, namely 12.3 million tons, for both subsidized and non-subsidized fertilizers.

Wijaya revealed that the allocation of subsidized fertilizers in 2023 is set at 7.8 million tons, with a breakdown of 4.6 million tons of urea fertilizer and 3.2 million tons of NPK fertilizer.

This is in accordance with the Minister of Agriculture Regulation (Permentan) Number 10 of 2022, which stipulates that the government only provides subsidies for two types of fertilizers, namely urea and NPK.

From the beginning of this year until March 11, 2023, PT Pupuk Indonesia claims to have distributed 1.5 million tons of subsidized fertilizers, consisting of 885,675 tons of urea fertilizer and 614,106 tons of NPK fertilizer.

This realization is equivalent to 67.26% of the total allocation of subsidized fertilizers until the end of March 2023, with a total quota of 2.23 million tons.

Stocks of subsidized fertilizers are only distributed to farmers who meet the criteria of Permentan Number 10 of 2022. The requirements for obtaining subsidized fertilizers include being a member of a farmer group registered in SIMLUHTAN (Agricultural Extension Worker Management Information System), and cultivating a maximum of two hectares of land.

Subsidized fertilizers are currently focused on 9 strategic commodities, down from approximately 72 commodities previously. These commodities include rice, corn, soybeans, chilies, shallots, garlic, coffee, sugarcane, and cocoa.